Best Fair Value Gap Trading Strategy

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In this video, we will show you one of our advanced entry strategies which we have developed using smart money techniques. We call this trading setup fair value gap in fair value gap.

00:00 - Introduction 01:30 - FVG Concept 09:06 - Trading Plan 15:52 - Chart Examples

FVG in FVG trading setup

1. What is the fair value gap?
2. What does it signify in terms of price action?
3. Why do we mark FVG on the chart?
4. FVG in FVG trading setup?
5. Step by step explanation
6. Multiple examples

FVG - wick, three consecutive candles

Imbalance: Between the buyers & Sellers

Buy-side imbalance -> Sell-side inefficiency

Sell-side imbalance -> Buy-side inefficiency

Higher timeframe checklist

• Analyze the market structure
• Identify the market direction
• Mark the key levels
• Spot the fair value gaps
• Wait for the price to tap into the trading zone

Higher timeframe Lower timeframe

4H - 15 min

1H - 5 min

15m - 1m

Step 1 Analyzing the market structure

We implement the market structure concepts of Smart Money to the chart to simply find the market direction and key levels.

We simply spot the break of structures, change of characters, and reversal liquidity sweep patterns on the chart.

Higer timeframe checklist

• Analyze the market structure
• Identify the market direction
• Mark the key levels
• Spot the fair value gaps
• Wait for the price to tap into the trading zone

Step 2 Confirmation & entry

Liquidity sweep FVG Long-term target

Lower timeframe checlist

• Spot a liquidity sweep parttern (Optional)
• Wait for a change of character
• Wait for FVG zone
• Execute trade
• Set targets

The second thing we look for in the higher timeframe is the key levels:

Example:

4 Hour

5 minute